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The Baseline
24 Jan 2024
By Akshat Singh

While markets have turned volatile in recent weeks, the Nifty 50 index has had a strong year,  rising by 19.7%, and touching its all-time high of 22,124.2 on January 16. Of the 29 sectors on Trendlyne’s dashboard, 27 have outperformed the Nifty 50 index. Except for chemicals & petrochemicals and FMCG, all major sectors surpassed the index by a good margin. Sectors like general industrials, durables, shipping, construction & engineering and fertilizer are also set to benefit from government outlays in FY25.

In this edition of Chart of the Week, we look at the top-performing sectors over the past year on Trendlyne’s sector dashboard.

Telecom and realty sectors double money for investors

Let’s start with the telecommunications equipment sector, which rose by 150.4% over the past year. The sector got a boost from the government's initiatives to export homegrown 4G and 5G technologies to attract investments and strengthen foreign ties, especially with African and Pacific countries. The Cellular Operators Association of India (COAI) has also submitted recommendations for various regulatory levies for the telecom sector in the 2024-25 budget. Top performers include ITI, Avantel, and GTL Infrastructure, with respective annual gains of 357.1%, 238.8%, and 52.2%. 

The realty sector is another star performer with a 106.2% rise in the past year. It is expected to continue its robust performance into 2024, driven by expected rate cuts and sustained demand. According to reports, the Prime Minister’s ‘housing for all’ scheme will continue to benefit buyers. Top performers in this sector include Signatureglobal (India), Prestige Estates, and D B Realty, which rose 192.8%, 190.6%, and 170.8% in the past year, respectively. 

Centre’s capex and subsidies boost general industrial and fertilizer sectors

The general industrial sector has risen by 91% over the past year. This surge is linked to the government allocating 3% of India's GDP as capital expenditure for this sector in the previous Union Budget. While the upcoming general elections might lead to a moderation in capital expenditure, Motilal Oswal suggests it is likely to remain high. Top performers in the sector include GE T&D India, Jindal Saw, and Suzlon Energy with annual gains of 452.9%, 320.9%, and 318%, respectively.

The fertilizers sector also rose by 86.1% in the past year. Analysts project the fertilizer subsidy bill to hit Rs 2 trillion in 2024, having already consumed 63% of its total capacity by November 2023. The top performers in the sector were The Fertilizers and Chemicals Travancore, Gujarat State Fertilizer & Chemicals, and National Fertilizers. They have risen by 161.1%, 152.1%, and 71.3% in the past year, respectively. 

The transportation sector surged 78.3% in the past year, driven by the shipping industry. Cochin Shipyard, Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers rose by 244%, 208.2% and 85.5%,  during the period. The growth can be attributed to strong order books from domestic and offshore clients, and the government’s push for defence funding. 

Railway stocks set to benefit from Union Budget 2024-25, PLIs drive consumer durables sector

The cement & construction sector rose by 71.7% in the past year, helped by the government's focus on capital spending in railways, roads, and defence. This trend is expected to continue at a moderate pace. Top performers in this sector include Ircon International, Rail Vikas Nigam and Texmaco Rail & Engineering, with annual gains of 339%, 317.4% and 270.7%, respectively.

Next, we have the consumer durables sector with a 70.3% rise. According to HDFC Securities, 2024 will likely see a rise in demand for high-quality products made locally with advanced features and sustainable designs. CRISIL forecasts an 8-10% growth in the sector this year, driven by a preference for premium products in urban areas. The white goods PLI scheme, with an allocation of Rs 6,238 crore spanning from 2021 to 2029, also supports this growth. Top performers of the sector include HBL Power Systems, Kaynes Technology India and Apar Industries. They have risen by 391.8%, 239.9%, and 219.6%, respectively, in the past year. 

Lastly, the metals & mining sector rose by 64.5% in the past year due to an uptick in real estate and infrastructure activities. India's finished steel consumption reached a five-year high in H1FY24 on the back of increased construction activities and high demand from the automobile sector. According to Fitch, India’s steel consumption for FY24 is expected to grow by 12%. However, higher Chinese imports have kept prices under pressure. In response, the government is developing a PLI 2.0 scheme to boost steel production. Top performers in this sector are Electrosteel Castings, Sandur Manganese & Iron Ores, and Gujarat Mineral Development Corp with annual gains of 279.8%, 241.4% and 205.8%, respectively, in the past year

 
Trendlyne Marketwatch
Trendlyne Marketwatch
23 Jan 2024, 03:45PM
Market closes lower, Spandana Sphoorty Financial misses net profit estimates by 8.4% in Q3
By Trendlyne Analysis

Nifty 50 closed at 21,238.80 (-333, -1.5%), BSE Sensex closed at 70,370.55 (-1,053.1, -1.5%) while the broader Nifty 500 closed at 19,206.45 (-395.5, -2.0%), of the 2,059 stocks traded today, 317 were in the positive territory and 1,728 were negative.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 21,239. Banking stocks led Nifty’s fall as Nifty Bank dropped 2.3% at close. The volatility index, Nifty VIX, rose by 7.6% and closed at 14.8 points. Zee Entertainment Enterprises shares closed 32.6% lower as Culver Max (Sony) terminated its merger agreement with Zee due to alleged breaches in the merger terms.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red following the benchmark index. Nifty Pharma and Nifty Healthcare closed higher than Saturday’s closing level. All other sectoral indices closed lower. According to Trendlyne’s sector dashboard, telecom services emerged as the top-performing sector of the day, with a rise of over 1.4%.

Most European indices trade in the red. US indices futures trade flat indicating a cautious start. Hamas killed 24 Israeli soldiers in Gaza, as tensions intensified in the Middle East. According to Reuters, Eurozone banks are expected to see an uptick in mortgages and corporate loans for the first time in two years.

  • Money flow index (MFI) indicates that stocks like Rail Vikas Nigam, Indian Railway Finance Corp, Sobha and PCBL are in the overbought zone.

  • Apollo Hospitals Enterprise rises 0.5% in trade and reaches a new 52-week high of Rs 6,428.7. The company ranks medium on Trendlyne’s Checklist, scoring 47.8%. It also features in a screener of companies with low debt.

  • Spandana Sphoorty Financial falls after missing net profit estimates by 8.4% in Q3FY24, despite a 70.7% YoY rise in net profit to Rs 118.3 crore and a 64.6% YoY increase in revenue. The company appears in a screener of stocks with declining RoE.

  • PSP Projectsis rising after emerging as the lowest bidder for a Rs 444.6 crore dairy plant development project by the National Dairy Development Board in Gujrat.

  • HDFC Securities maintains its 'Buy' rating on Ultratech Cementwith an upgraded target price of Rs 10,840 per share, indicating a potential upside of 9.8%. The brokerage highlights a positive demand outlook and expects a decline in unit operating expenses in Q4FY24, driven by lower energy costs. It expects the company's revenue to grow at a CAGR of 11.8% over FY23-26.

  • ONGC receives approval from the Ministry of Petroleum & Natural Gas to set up a wholly owned subsidiary, ONGC Green. The firm’s board also approves the formation of a Joint Venture with NTPC Green Energy, subject to regulatory approval.

  • Mahindra Logistics announces a multi-client warehousing facility in Maharashtra in a 6.5 lakh square feet area. The project will be developed in two phases and is expected to become operational by the end of 2024.

  • Jewellery stocks like Kalyan Jewellers, Senco Gold, PC Jeweller, and Motisons Jewellers are falling as the Ministry of Finance increases the import duty on gold and silver findings and coins of precious metals to 15% from the earlier 11%.

  • Vikas Lifecare rises to a new 52-week high of Rs 8 as it acquires a majority stake in Dubai's SKY 2.0 club for $79 million (approx Rs 656.6 crore). With this acquisition, the company plans to enter into the restaurant hospitality business in the Gulf nation.

  • Ashoka Buildconrises as it receives a letter of acceptance for an order worth Rs 662.6 crore from CIDCO. The order involves the construction of a connecting stilt bridge for Navi Mumbai International Airport.

  • Cigniti Technologies falls over 5% as its board appoints Srikanth Chakkilam as the new director and CEO, who is currently serving as a non-executive director of the company.

  • Udaya Kumar Hebbar, the Managing Director of CreditAccess Grameen, says the company targets a credit cost of 1.6-1.8%, and loan growth of around 24-25% in FY24. He adds that the NIMs (net interest margins) will be around 12.7-13% for the year.

  • Karur Vysya Bank rises sharply to an all-time high of Rs 187.8 as its Q3FY24 net profit grows by 42.3% YoY to Rs 411.6 crore. Its net interest income increases by 12.6% YoY and its asset quality improves as gross and net NPAs fall by 112 bps YoY and 48 bps YoY, respectively.

  • Cipla rises to a new 52-week high of Rs 1,420 as its Q3FY24 net profit increases by 32% YoY to Rs 1,068.4 crore, meeting Bloomberg estimates. Its revenue also improves by 13.6% YoY to Rs 6,603.8 crore on the back of growth in its pharmaceutical segment.

  • Media stocks like Zee Entertainment Enterprises, Dish TV India, Hathway Cable & Datacomand Network18 Media & Investmentplunge more than 3% in trade. The broader Nifty Mediaindex also trades almost 9% down.

  • Hindalco Industries falls over 2% as 11 lakh shares (around 0.1% equity), amounting to Rs 60.9 crore, reportedly change hands in a large trade.

  • Keystone Realtorsbags a project to redevelop two housing societies in Mumbai with a gross development value (GDV) of Rs 1,200 crore.

  • ICICI Bank rises to an all-time high of Rs 1,059.4 as its Q3FY24 net profit grows by 23.6% YoY to Rs 10,271.5 crore. Its net interest income increases by 13.4% YoY and asset quality improves as gross and net NPAs fall by 77 bps YoY and 11 bps YoY, respectively.

  • Medi Assist Healthcare Services' shares debut on the bourses at a 10.1% premium to the issue price of Rs 418. The Rs 1,171.6 crore IPO has received bids for 16.3 times the total shares on offer.

  • Manish Tandon, CEO & MD of Zensar Technologies, acknowledges pressure in the company's hi-tech vertical. He highlights that the company maintains its EBITDA margin guidance of mid-teens. Its Q3FY24 net profit falls by 7% QoQ to Rs 161.7 crore, while its revenue drops by 2.9% QoQ.

  • Persistent Systems rises sharply to an all-time high of Rs 8,713.7 as its Q3FY24 net profit grows by 8.7% QoQ to Rs 286.1 crore. Its revenue increases by 3.6% QoQ due to growth in banking, healthcare, and hi-tech & emerging segments. The company appears in a screener of stocks with growing net profit and margins QoQ.

  • Zee Entertainment Enterprises plunges as Culver Max (Sony) terminates its merger agreement with Zee due to alleged breaches in the merger terms. The global media company has initiated arbitration against Zee and demands a termination fee of Rs 90 crore.

  • IDFC First Bankfalls as it misses its net profit estimates by 7.5% in Q3FY24, despite an 18.4% YoY increase to Rs 715.7 crore. Its net interest income also grows. The bank's asset quality improves as its gross and net NPA margins drop by 92 bps YoY and 35 bps YoY, respectively.

  • Coforgeis rising as its net profit grows by 31.5% QoQ to Rs 238 crore in Q3FY24. Revenue improves by 2.1% QoQ, driven by the EMEA and Indian markets. Its EBITDA margin also expands by 220 bps QoQ on the back of reduced employee benefit expenses. The company appears in a screenerof stocks with increasing revenue for the past eight quarters.

Riding High:

Largecap and midcap gainers today include Cipla Ltd. (1,409.00, 7.05%), Petronet LNG Ltd. (259.90, 5.31%) and Persistent Systems Ltd. (8,254.40, 4.20%).

Downers:

Largecap and midcap losers today include Zee Entertainment Enterprises Ltd. (155.95, -32.61%), General Insurance Corporation of India (334.15, -9.53%) and Oberoi Realty Ltd. (1,369.75, -8.94%).

Volume Shockers

32 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Borosil Renewables Ltd. (566.55, 11.59%), Cipla Ltd. (1,409.00, 7.05%) and Petronet LNG Ltd. (259.90, 5.31%).

Top high volume losers on BSE were Zee Entertainment Enterprises Ltd. (155.95, -32.61%), Oberoi Realty Ltd. (1,369.75, -8.94%) and Tejas Networks Ltd. (743.50, -8.53%).

Asahi India Glass Ltd. (557.80, 2.66%) was trading at 52.9 times of weekly average. Elgi Equipments Ltd. (554.10, 2.54%) and Garware Technical Fibres Ltd. (3,565.00, 4.57%) were trading with volumes 10.9 and 7.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

64 stocks made 52 week highs, while 7 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (943.00, -0.20%), Apollo Hospitals Enterprise Ltd. (6,153.75, 0.51%) and Aurobindo Pharma Ltd. (1,133.60, -0.91%).

Stocks making new 52 weeks lows included - HDFC Bank Ltd. (1,427.35, -3.48%) and Vinati Organics Ltd. (1,685.75, -1.27%).

6 stocks climbed above their 200 day SMA including Privi Speciality Chemicals Ltd. (1,175.20, 1.73%) and CCL Products India Ltd. (632.90, 0.77%). 24 stocks slipped below their 200 SMA including Tejas Networks Ltd. (743.50, -8.53%) and IDFC First Bank Ltd. (81.80, -6.73%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Jan 2024

Nifty 50 closed at 21571.80 (-50.6, -0.2%) , BSE Sensex closed at 71423.65 (-259.6, -0.4%) while the broader Nifty 500 closed at 19601.90 (-4.5, 0.0%)

Market breadth is holding steady. Of the 2025 stocks traded today, 1029 were on the uptick, and 960 were down.

Riding High:

Largecap and midcap gainers today include IDBI Bank Ltd. (79.10, 13.57%), Indian Railway Finance Corporation Ltd. (176.25, 9.98%) and NHPC Ltd. (80.50, 9.45%).

Downers:

Largecap and midcap losers today include Hindustan Unilever Ltd. (2468.90, -3.76%), PB Fintech Ltd. (868.00, -3.23%) and Oracle Financial Services Software Ltd. (6700.50, -2.57%).

Movers and Shakers

12 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Rites Ltd. (629.00, 13.65%), IDBI Bank Ltd. (79.10, 13.57%) and HFCL Ltd. (99.70, 12.59%).

Top high volume losers on BSE were Can Fin Homes Ltd. (768.35, -3.25%) and JK Cement Ltd. (3992.05, -1.51%).

SIS Ltd. (516.00, 8.41%) was trading at 18.9 times of weekly average. Rain Industries Ltd. (164.20, 9.21%) and Ceat Ltd. (2914.00, 12.30%) were trading with volumes 9.3 and 7.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

78 stocks made 52 week highs,

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (6122.55, 0.46%), Apollo Tyres Ltd. (524.95, 4.27%) and Bajaj Holdings & Investment Ltd. (8261.55, -2.49%).

9 stocks climbed above their 200 day SMA including Rain Industries Ltd. (164.20, 9.21%) and Rossari Biotech Ltd. (819.35, 3.93%). 5 stocks slipped below their 200 SMA including Data Patterns (India) Ltd. (1882.50, -2.10%) and V-Mart Retail Ltd. (2036.50, -1.55%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Jan 2024
Markets close lower, Bharti Airtel arm files DRHP for IPO

Nifty 50 closed lower at 21571.80 (-50.6, -0.2%) , BSE Sensex closed at 71423.65 (-259.6, -0.4%) while the broader Nifty 500 closed at 19601.90 (-4.5, 0.0%)

Market breadth is holding steady. Of the 2025 stocks traded today, 1029 were on the uptick, and 960 were down.

  • Kotak Mahindra Bank reported close to 8% YoY growth in net profit for the December quarter, to Rs 3,005 crore; the number came below estimates of Rs 3,250 crore.

  • Ashish Kacholia buys additional shares of Zaggle Prepaid Ocean Services in the December quarter.

  • Bharti Airtel says that its Bharti Hexacom arm has filed draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering, following Board approval.

  • Megatherm Induction has fixed a price band of Rs 100-108 per share for its Initial Public Offering (IPO). The issue will open for subscription on January 25 and end on January 30,

  • HDFC Securities notes some weakness with Angel One, saying that incremental customer additions "are turning inferior", with lower trading for these new users. However, it has maintained the stock on accumulate.  

  • Tata Steel has confirmed that it will close both blast furnaces at its plant in Port Talbot, Wales, eliminating 2,800 jobs

  • Citigroup downgraded Reliance Industries post Q3 results, but raised the target price to Rs 2910 from Rs 2600 earlier. Analysts noted that Jio and retail performance were in line with numbers, while the oil&gas segment delivered strong numbers. 

  • In the US, traders are continuing to bet on a soft landing for the economy and Fed rate cuts. Bullishness has pushed the S&P 500 to a second week gain and the index  has hit a new high. The Nasdaq 100 hit a record high with strong tech sentiment, climbing almost 3% over the week. 

Riding High:

Largecap and midcap gainers today include IDBI Bank Ltd. (79.10, 13.57%), Indian Railway Finance Corporation Ltd. (176.25, 9.98%) and NHPC Ltd. (80.50, 9.45%).

Downers:

Largecap and midcap losers today include Hindustan Unilever Ltd. (2468.90, -3.76%), PB Fintech Ltd. (868.00, -3.23%) and Oracle Financial Services Software Ltd. (6700.50, -2.57%).

Movers and Shakers

12 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Rites Ltd. (629.00, 13.65%), IDBI Bank Ltd. (79.10, 13.57%) and HFCL Ltd. (99.70, 12.59%).

Top high volume losers on BSE were Can Fin Homes Ltd. (768.35, -3.25%) and JK Cement Ltd. (3992.05, -1.51%).

SIS Ltd. (516.00, 8.41%) was trading at 18.9 times of weekly average. Rain Industries Ltd. (164.20, 9.21%) and Ceat Ltd. (2914.00, 12.30%) were trading with volumes 9.3 and 7.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

78 stocks made 52 week highs,

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (6122.55, 0.46%), Apollo Tyres Ltd. (524.95, 4.27%) and Bajaj Holdings & Investment Ltd. (8261.55, -2.49%).

9 stocks climbed above their 200 day SMA including Rain Industries Ltd. (164.20, 9.21%) and Rossari Biotech Ltd. (819.35, 3.93%). 5 stocks slipped below their 200 SMA including Data Patterns (India) Ltd. (1882.50, -2.10%) and V-Mart Retail Ltd. (2036.50, -1.55%).

 
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The Baseline
20 Jan 2024
The Indian stock market in an election year | Screener: Stocks announcing result dates with high revenue estimates
By Shreesh Biradar

2024 looks to be a nail-biter of a year, with India's general election coming up. In fact, more than 50 nations are holding elections in 2024, with 4 billion people - half the world's population - voting. The results of elections in the US, India, the Eurozone and Russia will be closely watched. 

Vladimir Putin is of course, likely to be re-elected in the Russian election. One would argue that Putin should be worried about the impact of 315,000 Russians dying in the Ukraine war, and a weak economy. But since people opposing Putin usually end up with jail terms or "fall" out of windows, he doesn't have much real competition.

In the US, opinion polls this early in the election cycle are usually inaccurate. But right now Donald Trump has the lead over Biden, despite the many legal cases he faces this year. In India, surveys suggest that PM Modi will be the voters’ choice. 

Strategists at Goldman Sachs expect higher foreign inflows into India post elections: 

The Modi-led government is using the Ayodhya temple inauguration to woo Hindu voters, and may also announce new benefits for rural votebanks in the upcoming budget. Rural voters could see a hike in minimum support prices (MSPs), or a boost in employment programs.

In India, the average return of the Nifty 50 one year before the elections is 29.1%, and one year after is 12% (averaged over the past five general elections).

Nifty50 has risen 20% on average in the six months before elections, over the past five general elections

But India’s runaway stock market needs to face up to slowing consumption. Lower capex by India Inc. compared to government spending, and slowing foreign direct investment have also increased uncertainty over market reaction in an election year.

In this week’s Analyticks:

  • The election impact: How will the Indian market perform in an election year? 
  • Screener: Rising stocks that have announced result dates, with strong Forecaster estimates for revenue and EPS in Q3FY24

Let’s get into it.

Populist giveaways may not have a big impact on the stock market

Recent state elections have seen a range of populist moves, from free travel for women to interest waivers for agricultural loans. To lock in the rural vote, the Modi-led government may announce something additional this year, similar to the 2019 direct benefit transfer of Rs 6,000 per farmer per year.

Speculation is that the announcement could include free electricity for rural voters, or an increase in the size of subsidized agricultural loans (currently agricultural loans up to Rs 3 lakh have an interest subsidy of up to 4% per annum if promptly repaid). 

The one thing common across pre-election budgets has been an increase in the minimum support price (MSP) of crops. The government typically increases MSPs for Rabi and Kharif crop just before the election.  The National Rural Employment Guarantee Act (NREGA) has also increased its budgetary estimate pre-election in the past ten years.

One would expect these populist moves to push up the budgetary deficit for the economy, but this has not been true in the last decade. India has exceeded its budgetary estimates only four times in the past ten years (FY09, FY12, FY20 and FY21). 

India’s actual revenue expenditure is less likely to shoot budgetary estimate in 2024

One reason is that any MSP increase puts more money in the hands of rural folks, boosting rural consumption. Food inflation might see a spike as a result. But if the inflation impact is not major, the overall benefits overshadow the downside.

Since government spending in rural areas has declined by 3% (April 23-November 23), the government may announce additional incentives for rural voters in the FY25 budget. The market could see a knee-jerk negative reaction to these populist moves. But in the long run, these announcements don't break the bank and usually deliver positive returns.

Cuts are coming: US Fed expected to cut rates in April, RBI in May

Interest rate cuts are expected across the globe this year. But the timing of interest rate cuts in India is still unclear. 

According to Bloomberg and HSBC, the first round of interest rate cuts by the US Fed is expected to be around April-May, and big cuts are likely only after June. The interest rate cuts will be absorbed by the consumer just before the US presidential election in November.  This will be followed by rate cuts by the European Central Bank as the European Parliament heads into elections in November.

The RBI usually cuts Indian interest rates after rate cuts by the US Fed. With India’s general election planned for May 2024, it will be interesting to see if RBI jumps the gun and cuts interest rates pre-election and before the Fed. But Morgan Stanley expects RBI to cut interest rates only in May or June. 

Interest rate cuts just before elections are considered a populist move. Will this government risk pushing the RBI to do this, opening the door to higher inflation? Investors will be watching this closely.

India's market valuations don’t match reality

The revenue and profit growth of Nifty 50 companies have seen a mismatch in the past couple of quarters. Revenue growth has been moderate, while profits have been strong. A report by Sharekhan expects Nifty 50 firms' revenue to increase by 6% YoY in Q3FY24, while profits are expected to surge 11% YoY. 

The tepid growth in revenues indicates slowing consumption and the impact of the global slowdown on India's economy. Companies have battled this with premiumization of products, along with a cut-down in capex spending, which has helped profits grow.

The growth in profits has pushed the Nifty 50 to new highs, with investors ignoring the underlying problem of weaker revenues. Indian indices are trading at expensive valuations compared to historical averages.

India’s Sensex is trading at a 27% premium compared to its historical average

India’s stock market valuations are among the highest in the world right now. The Sensex is currently trading at 24 PE, a premium of 27% from its 10-year average. Most other emerging economies' benchmark indices are trading below their historical averages (except for Taiwan and Hong Kong).

The recent runup in Indian indices could limit the positive reaction from the stock market, if a single party gets a clear win. The optimism with a single party mandate could also be subdued with a Modi win, as the Modi led government has now been in power for the past 10 years. However, a hung assembly could definitely spook markets.

According to Chris Wood, the global head of equity strategy at Jefferies LLC, Nifty 50 is expected to see a 25% correction if the Modi-led government fails to get a clear mandate. Markets are mostly pricing in a Modi or Modi-coalition victory, so there is not much remaining upside for that outcome. A more confusing election result would be a different story.

Screener: Rising stocks have announced their result dates with strong Forecaster estimates for revenue and EPS in Q3FY24

Craftsman Auto leads in Forecaster estimates for revenue YoY growth in Q3

As the result season begins, we take a look at stocks that have risen the most over the past year and quarter, with high Forecaster estimates for growth in Q3FY24. This screener shows rising stocks over the past quarter and year which have announced their result dates. These stocks also have high Forecaster growth in revenue and EPS in Q3FY24, and 'Strong Buy' or 'Buy' broker consensus rating.

The screener is dominated by stocks from the automobiles & auto components, banking & finance and software & services sectors. Major stocks that appear in the screener are Craftsman Automation, CreditAccess Grameen, Nippon Life India Asset Management, Endurance Technologies, Tata Motors, Equitas Small Finance Bank, Intellect Design Arena and Motherson Sumi Wiring India. 

Craftsman Automation has the highest Forecaster estimates for YoY revenue growth at 55.7% in Q3FY24. The stock has risen by 11.2% over the past quarter and 45.8% in the past year. According to Motilal Oswal Financial Services, growth in the aluminium products segment and in the passenger vehicles’ original equipment manufacturing segment will drive revenue growth for this auto equipment manufacturer.

For CreditAccess Grameen, Trendlyne’s Forecaster expects its revenue to grow 42.5% YoY in Q3FY24. The stock rose by 22.3% over the past quarter, while it gained 92.9% in the past year. HDFC Securities believes that the NBFC is delivering strong profitability and revenue growth in a volatile asset class which will help in improving its cost of funds in the medium term.

You can find more screeners here.

Signing off,

The Trendlyne Team

 
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The Baseline
19 Jan 2024
Five Interesting Stocks Today

1. Rail Vikas Nigam (RVNL): 

This construction & engineering stock has risen by 45.8% over the past week after it formed a joint venture (JV) and incorporated a South African subsidiary on Tuesday. The surge helped its stock price to touch its all-time high of Rs 251.4 per share on Thursday. According to Trendlyne’s technicals, the stock has also risen by 59.5% over the past month, helping it to feature in a screener of stocks with expensive valuations according to the Trendlyne valuation score.

RVNL has formed a JV with Jakson Green to strengthen its renewable energy portfolio. As per the agreement, RVNL will hold a 49% stake in the JV, while Jakson Green will hold the remaining 51% stake. Among the renewable energy projects, the JV will focus on exploring opportunities for solar power projects internationally and in India. The company also incorporated a subsidiary in South Africa named RVNL Infra South America. This will enable the company to establish its railway infrastructure business internationally.

The company’s director of operations, Rajesh Prasad said, “With the new JV and subsidiary, we are we–placed to receive orders in international markets. We expect the company to book orders worth Rs 80,000-85,000 crore in FY24.” 

Speaking on the stocks’ recent rally, Vishal Perival, infrastructure sector analyst at IDBI Capital, noted, “Railway stocks have experienced significant upswings in anticipation of the upcoming budget. There is an expectation of substantial budgetary allocation for the sector." Trendlyne’s Forecaster sees the company’s revenue growing by 3.2% YoY to Rs 5,463.8 crore in Q3FY24. However, net profit is expected to fall by 4.8% YoY to Rs 364 crore.

2. PCBL:

This carbon black company hit its all-time high of Rs 317.9 on Thursday and has risen by 17% in the past week. The rise came after the company announced its Q3FY24 results. PCBL’s net profit grew by 52.4% YoY to Rs 147.9 crore, beating Trendlyne Forecaster’s estimate by 4.8% while its revenue increased by 21.3% YoY to Rs 1,663.9 crore, marginally below Forecaster’s estimate. The company also appears on a screener for stocks with improving ROCE in the past 2 years

The revenue increase was on account of increased carbon black demand from auto OEMs in the festive season. Increased demand from Europe has also helped boost international sales. Its Q3FY24 consolidated sales volume stood at 1.4 lakh MT and it achieved the highest-ever power generation volume. 

The firm also achieved its highest-ever EBITDA of Rs 286 crore, up 66% YoY. Its EBITDA margin was driven by higher price realization for its specialty products. The firm has also patented two high grades of specialty chemicals and expects to reach a volume of 6,000 tonnes annually in the next two years, which will be sold at 4X of current margins. These products are expected to provide roughly 7-8% additional EBITDA to the company. 

During the quarter, the company acquired a 100% stake in Aquapharm Chemicals for Rs 3,800 crore. Post-acquisition, Aquapharm is expected to add 40% more EBITDA to Philip Carbon. Aquapharm’s biodegradable chelating agents are rapidly replacing traditional agents and it has been ramping up its sales in Asia and looking forward to expanding in the European market. 

JM Financials maintains its ‘Buy’ call on PCBL as it considers it a key player in the carbon black market for lithium-ion batteries. It also suggests that its joint venture with Kinaltek will help it achieve its goal of diversifying its business portfolio.

3. IRB Infrastructure:

This roads and highways company has risen by 11.3% in the past month and reached a new 52-week high of Rs 47.6 in the past week. The firm reported a 26% YoY increase in toll collections in December 2023 of Rs 488 crore. It also emerged as the preferred bidder for NHAI’s Kota bypass on NH-27 in Rajasthan and for the Gwalior-Jhansi bypass section under the Toll Operate Transfer (TOT) model. The two projects have an upfront cost of Rs 1,683 crores and will turn cash-flow positive in the first year of their operations. 

Additionally, the firm’s Samakhiyali Santalpur Build Operate Transfer (BOT) project in Gujarat became operational on December 28, 2023. Historically, Q3 and Q4 are high-volume quarters for IRB Infrastructure, and owing to this, management expects the uptick in toll collections to continue in Q4FY24. 

The Hybrid Annuity Model (HAM) for road projects is facing obstacles in execution and funding, so to reduce its debt levels, NHAI has shifted from HAM to BOT and TOT models while awarding road contracts. IRB currently has a 38% market share in India’s TOT roads and a 20% share in India’s Golden Quadrilateral project (including BOT and TOT).

Kotak Institutional Equitiesstates, “With a Rs 44,400 crore BOT in the pipeline for FY24 and two more TOT projects expected to be awarded, firms like IRB with strong balance sheets will benefit.” The firm’s private InvIT (IRB Infrastructure Trust) has successfully refinanced five BOT projects at a lower interest rate, which could save Rs 1,000 crore in interest expense over the next five years. 

4. ICICI Lombard General Insurance:  

This general insurance stock rose 5.8% on January 17 after announcing its Q3FY24 results, as its net profit grew by 22.4% YoY to Rs 431.5 crore and revenue rose by 14.7% YoY. The company appears in a screener of stocks with increasing quarterly net profit and margins. According to Trendlyne’s Technicals, the stock rose 6.7% in the past week.

In Q3FY24, gross direct premium income (GDPI) reached Rs. 6,400 crore, growing 15% and outperforming the industry. In the motor segment, the company saw 5.6% YoY growth, with strong contributions from the new private car segment at 30% YoY. The health segment grew at 29.1% YoY. The company’s provision increased to Rs 37 crore in Q3FY24 as compared to Rs 1 crore in Q3FY23.

The management says the company maintains its premium growth guidance in the 15-19% range till FY25. They tend to remain careful in the motor segment, noting that although claim ratios have decreased since Q3FY23, they are still quite high. Also, they expect the combined ratio to fall by another 160 bps in FY25 due to the lower claims ratio, which indicates that the company aims to reduce its losses.

Sharekhan highlights the firm’s competitive advantage in business reach through a multi-channel distribution network and conservative underwriting. As a result, the brokerage expects the RoE to come back to the 18% levels of Q3FY23 in the next one year from the current levels of 17.1% in Q3FY24. The brokerage maintains a 'Buy' rating on the stock. 

5. Newgen Software Technologies:

This IT consulting & software company rose 5% on January 16 and reached its 52-week high of Rs 901.1, after announcing its Q3FY24 results. Its net profit jumped by 43% QoQ to Rs 68.3 crore in Q3FY24 on account of a deferred tax credit of 5.8 crore. Revenue was up 10.4% QoQ, due to gains in India, EMEA (Europe, Middle East, and Africa), APAC (Asia–Pacific, excluding India), and USA markets. The company’s net profit beat Trendlyne’s Forecaster estimates by 3.7%, while revenue missed estimates by 2.3%. 

As a result of the share price rise, Newgen features in a screener of stocks with prices above short, medium, and long-term moving averages.  During the quarter, the company’s India market (which constitutes 34% of the revenue pie) saw revenue increase by 19.8% QoQ, and that of the EMEA market (contributing 31% to total revenue) rose by 0.6% QoQ, driven by strong growth in banking and financial services.  

The software firm is witnessing strong traction from its existing and new clients. Newgen has added 11 new clients during the quarter and 38 clients during 9MFY24 across various geographies. Its order book is also seeing healthy traction. Diwakar Nigam, the Chairman & Managing Director said, ”The company’s order book has grown around 20% in 9MFY24, of which there's a significant part to be executed over the next 2-3 quarters. This is expected to drive revenue growth for the company, by more than 25% over the coming quarters”. 

Post Newgen Software’s Q3 performance, Nuvama Wealth maintains its ‘Buy’ rating with an upgraded target price of Rs 1,000, implying an upside potential of 20%. The brokerage believes the company’s growth momentum will continue, driven by strong deal bookings and pipeline, product launches, and its investments in sales and marketing.

Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
19 Jan 2024
Market closes higher, Ultratech Cement's net profit surges by 67.9% YoY to Rs 1,777 crore in Q3FY24
By Trendlyne Analysis

Nifty 50closed at 21,622.40 (160.2, 0.8%), BSE Sensexclosed at 71,683.23 (496.4, 0.7%) while the broader Nifty 500closed at 19,606.40 (191.6, 1.0%). Market breadth is highly positive. Of the 2,013 stocks traded today, 1,349 were on the uptrend, and 632 went down.

Indian indices extended their gains from the afternoon session and closed in the green, with the Nifty 50closing at 21,622.4 points. The Indian volatility index, Nifty VIX, fell 1.4% and closed at 13.9 points. BSE and NSE announced a full-fledged trading session on Saturday and declared a holiday on Monday.  

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty Metal and Nifty FMCG closed higher than their Thursday close. According to Trendlyne’s sector dashboard, Telecommunications Equipment emerged as the top-performing sector of the week, with a rise of 6.5%. 

Most major Asian indices closed higher amid positive global cues. European stocks traded in the green, tracking Asian indices. US index futures also traded higher, extending their gains from Thursday. Brent crude oil futures traded up after closing 1.2% higher on Thursday.

  • Relative strength index (RSI) indicates that stocks like Rail Vikas Nigam, Indian Railway Finance Corp, Oracle Financial Services Software and Gujarat Gas are in the overbought zone.

  • Axis Bank, Pidilite Industries, Tata Elxsi, and CG Power and Industrial Solutions' weekly average delivery volumes rise ahead of their Q3FY24 results on Tuesday.

  • Ultratech Cement rises sharply as its net profit surges by 67.9% YoY to Rs 1,777 crore in Q3FY24. Revenue grows by 7.8% YoY on the back of an increase in sales of grey cement from the domestic market and ReadyMix concrete. It appears in a screener of stocks near their 52-week highs with significant volumes.

  • Hindustan Zinc rises as its Q3FY24 net profit beats Forecaster estimates by 9.2%. However, its net profit declines by 5.9% YoY to Rs 2,028 crore due to higher employee benefits and finance expenses. Its revenue slips by 7.4% YoY due to the falling zinc and lead segment.

  • Shilpa Medicare is rising after getting marketing authorization from Germany for Amifampridine tablets 10 mg. The drug, used to treat rare muscle diseases, has sales of around $20 million in Europe.

  • EPack Durables' Rs 640.1 crore IPO gets bids for 0.5X the available 2 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.8X the available 1 crore shares on offer.

  • Dixon Technologies (India) falls as the Directorate of Revenue Intelligence conducts searches at its subsidiary's Noida facility. The searches are related to the classification of the raw material imported for manufacturing one of the products at the facility.

  • C.E. Info Systems gains 3% after receiving an OEM business contract worth Rs 400 crore from Hyundai and Kia Motors. The contract involves providing digital mapping services and navigation solutions in India.

  • Abhyuday Jindal, Managing Director of Jindal Stainless Steel, expresses concern over the impact of the Red Sea crisis on the company's shipments. He mentions that the crisis affects export targets and increases transportation duration and costs to Europe. Jindal expects a decline in Q4 export sales and revises the target from 15% to approximately 12%.

  • Tata Steelrises sharply as reports emerge that the company has rejected the trade union's proposal to keep the blast furnaces operational at Port Talbot Steelworks. The report also claims that the company plans to set up electric arc furnaces to produce steel from recycled scrap.

  • Foreign institutional investors withdrew Rs 7,716.3 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Index options witnessed the highest outflow of Rs 88,999.3 crore from foreign investors. Meanwhile, mutual funds were net buyers in the equity market, injecting Rs 724 crore during the same period.

  • Lupin rises to an all-time high of Rs 1,439.9 as it receives US FDA approval for its abbreviated new drug application for Febuxostat Tablets. The drug is used in the treatment of hyperuricemia in adult patients and has a market size of $24 million (approx Rs 224.5 crore) in the USA.

  • Aarti Industries rises to an all-time high of Rs 663.4 as Emkay Global initiates coverage with a ‘Buy’ rating and a target price of Rs 750. The brokerage highlights that demand for chemical products - Mono Methyl Aniline (MMA) and Methyl Ethyl Aniline (MEA) will grow substantially, which is positive for the company.

  • Metro Brands falls sharply as its net profit declines by 12.6% YoY to Rs 97.8 crore in Q3FY24. Revenue rises by 6.1% YoY, owing to the addition of 31 new stores during the quarter. It appears in a screener of stocks with declining net profit and profit margin (YoY).

  • Tata Consumer Productsis rising after its board of directors approved fundraising of Rs 3,000 crore through a rights issue to the eligible equity shareholders of the company.

  • Poonawalla Fincorprises to an all-time high of Rs 519.7 as its Q3FY24 net profit grows by 76.3% YoY to Rs 265.1 crore due to lower employee benefit expenses. Its revenue increases by 52% YoY, driven by growth in interest income.

  • Coal India rises as reports suggest that 46.4 lakh shares (0.1% equity), amounting to Rs 176.9 crore, change hands in a large trade.

  • EPack Durablesraises Rs 192 crore from anchor investors ahead of its IPO by allotting around 1.4 crore shares at Rs 331 each. Investors include Societe Generale, Copthall Mauritius Investment, Integrated Core Strategies (Asia), Aditya Birla Sun Life, SBI Life Insurance, HDFC Life Insurance Co, and Bajaj Allianz Life Insurance.

  • Glenmark Lifesciencesgains 2% after the announcement of a Master Supply Agreement (MSA) with a Japanese pharmaceutical company. This agreement involves the manufacturing and supply of Active Pharma Ingredients (API) for antispasmodic drugs used to treat urinary bladder spasms. The estimated commercial value of the project is $ 5 million (approx. Rs 41 crore).

  • Finolex Industries rises as its Q3FY24 net profit grows by 20% YoY to Rs 95.4 crore due to lower inventory expenses. However, the revenue falls by 9.4% YoY due to falling PVC resin and PVC pipes & fittings segments.

  • Naresh Jalan, Managing Director of Ramkrishna Forgings, says demand remains strong across the domestic and export markets. He anticipates that the company’s volumes will reach 1.45 lakh tonnes in FY24. Jalan highlights that its net debt is currently Rs 590 crore, and the firm’s target is to be debt-free over two years.

  • Dolly Khanna sells a 0.6% stake in Pondy Oxides & Chemicals in Q3FY24. She now holds a 2.4% stake in the company.

  • Porinju Veliyath cuts his stake in Shalimar Paints to below 1% in Q3FY24. He held 1.6% in Q2FY24.

  • Ashish Kacholiaadds Updater Servicesto his portfolio in Q3FY24. He buys a 2% stake in the company.

  • IndiaMART InterMESHrises as its net profit beats Trendlyne's Forecaster estimates by 9.1% despite declining by 27.4% YoY to Rs 81.9 crore in Q3FY24. Revenue grows by 21.4% YoY on the back of an increase in revenue from the web and related services segments. It appears in a screenerof stocks with medium to low Trendlyne momentum scores.

Riding High:

Largecap and midcap gainers today include General Insurance Corporation of India (356.05, 16.47%), Indian Railway Finance Corporation Ltd. (160.25, 9.57%) and Linde India Ltd. (5,822.25, 7.61%).

Downers:

Largecap and midcap losers today include Zee Entertainment Enterprises Ltd. (235.00, -5.32%), Dixon Technologies (India) Ltd. (6,100.20, -3.22%) and IndusInd Bank Ltd. (1,561.10, -3.21%).

Movers and Shakers

28 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included General Insurance Corporation of India (356.05, 16.47%), Housing and Urban Development Corporation Ltd. (159.40, 15.76%) and Aarti Industries Ltd. (678.90, 11.00%).

Top high volume losers on BSE were Metro Brands Ltd. (1,166.50, -3.84%), IndusInd Bank Ltd. (1,561.10, -3.21%) and Hatsun Agro Products Ltd. (1,130.50, -2.32%).

Linde India Ltd. (5,822.25, 7.61%) was trading at 15.5 times of weekly average. Intellect Design Arena Ltd. (923.75, 6.64%) and Home First Finance Company India Ltd. (1,009.15, 2.56%) were trading with volumes 6.8 and 6.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

63 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (6,094.65, 1.73%), Bajaj Holdings & Investment Ltd. (8,472.80, 5.92%) and Bank of India (135.20, 0.63%).

8 stocks climbed above their 200 day SMA including Astral Ltd. (1,850.75, 3.31%) and Cera Sanitaryware Ltd. (8,179.00, 3.08%). 7 stocks slipped below their 200 SMA including Zee Entertainment Enterprises Ltd. (235.00, -5.32%) and Privi Speciality Chemicals Ltd. (1,141.00, -1.76%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
18 Jan 2024
Market closes lower, Tata Communications' revenue up 24.4% YoY to Rs 5633.3 crore in Q3
By Trendlyne Analysis

Nifty 50 closed at 21,462.25 (-109.7, -0.5%), BSE Sensex closed at 71,186.86 (-313.9, -0.4%) while the broader Nifty 500 closed at 19,414.80 (-72.8, -0.4%), of the 2,013 stocks traded today, 999 were on the uptrend, and 983 went down.

Indian indices maintained the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 21,462. The volatility index, Nifty VIX, dropped by 6.7% and closed at 14.1 points. Oracle Financial Services Software closed at an all-time high of Rs 6,545.5 as its Q3FY24 net profit increased by 77.5% QoQ to Rs 740.8 crore helped by lower professional and finance expenses. Its revenue improved by 26.2% QoQ due to the growing product and services segment.

Nifty Midcap 100 closed flat, while Nifty Smallcap 100 closed in the red following the benchmark index. Nifty Pharma and Nifty Realty closed higher than Wednesday’s closing level. According to Trendlyne’s sector dashboard, hardware technology & equipment emerged as the top-performing sector of the day, with a rise of over 0.9%.

Most European indices trade in the green. US indices futures trade flat indicating a cautious start. The data released by the US Census Bureau indicated that the country’s retail sales in December increased by 0.6% MoM against estimates of 0.4% growth.

  • Oracle Financial Services Software sees a long buildup in its January 25 future series as its open interest rises 86.1% with a put-call ratio of 1.2.

  • Tata Communications rises as its Q3FY24 revenue grows by 24.4% YoY to Rs 5,633.3 crore due to the growing data, transformation, and real estate services segments. However, its net profit declines by 88.6% YoY due to higher network & transmission and employee benefit expenses.

  • Intellect Design Arena rises as it starts an AI Innovation centre in GIFT City, Gujarat. The centre will connect the company with 8 global cities, New York, London, Frankfurt, Toronto, Singapore, Melbourne, Chennai, and Mumbai.

  • Sugar industrystocks like Ravalgaon Sugar Farm, Bannari Amman Sugar, and Dhampur Bio Organicstrade in red as the Uttar Pradesh government increases the Minimum Selling Price (MSP) on sugarcane by Rs 20 per quintal.

  • BofA anticipates India's credit growth to accelerate following the Lok Sabha elections. The brokerage highlights that loan growth in India was around 20% in 2023, driven by retail loans. It expects the telecom, infrastructure, and renewables sectors to boost credit growth.

  • Consumer durables stocks like Crompton Greaves Consumer Products, Havells India, Titanand Rajesh Exportsare falling in trade. All constituents of the broader BSE Consumer Durablesindex are also trading in the red.

  • Ashok Leyland is rising after it bags an order worth Rs 522 crore from Karnataka State Transport Undertakings for manufacturing 1,225 BSVI diesel-fueled buses. The buses will have an advanced H series engine, which is expected to reduce the overall cost of ownership.

  • Sterling & Wilson Renewable Energy is falling as its revenue misses Forecaster estimates by 34% despite rising by 43.2% YoY in Q3FY24. Revenue rises on the back of an increase in revenue from the EPC business. Its net loss declines by 37.1% YoY due to a reduction in direct project costs. The company appears in a screener of stocks with low Piotroski scores.

  • Reports suggest that 43.9 lakh shares (0.5% equity) of Max Healthcare Institute, amounting to approximately Rs 312.8 crore, change hands in a large trade.

  • Motilal Oswal Financial Services maintains its 'Buy' rating on Angel One with an upgraded target price of Rs 4,000 per share, indicating a potential upside of 20.2%. The brokerage believes that the company's focus on gaining market share in the cash segment and revenue growth from the distribution segment will contribute to its success. It expects the company's revenue to grow at a CAGR of 18.6% over FY23-26.

  • South Indian Bankrises to an all-time high of Rs 31.2 as its Q3FY24 net profit grows by 197.2% YoY to Rs 305.4 crore. However, its net interest income decreases by 0.7% YoY due to a decline in the retail and other banking operations segments. The bank's asset quality improves as its gross and net NPA margins decline by 74 bps and 65 bps YoY, respectively.

  • Shakti Pumpssurges by 3% after its board of directors approves a fundraising plan of Rs 200 crore in one or more tranches through a qualified institutional placement.

  • Jayant Acharya, Joint Managing Director & CEO of JSW Seel, expects steel demand to grow by 14% but highlights that cheap imports are a concern. He adds that the company plans to expand its capacity to 35 MT by FY25.

  • Welspun Corp hits a new 52-week high of Rs 596.4 after its associate company, East Pipes Integrated Company for Industry (EPIC), wins multiple orders worth SAR 1.3 billion (Rs 3,000 crore) in Saudi Arabia to manufacture and supply steel pipes to Saline Water Conversion Corporation and Aramco.

  • Zaggle Prepaid Ocean Services surges 3% as it bags a contract worth Rs 200 crore from Torrent Gas to implement a close loop fleet program.

  • ICICI Prudential Life Insurance plunges almost 7% as its net profit misses Trendlyne's Forecaster estimates by 13.9%, despite rising by 3.1% YoY in Q3FY24. Revenue increases by 52% YoY due to improvement in revenue from the life and health insurance segments. It appears in a screener of stocks with declining cash flow from operations over the past two years.

  • Neeraj Kumar, CEO of Jindal Saw, says the company expects higher revenue in Q4FY24 compared to Q3, with margins above 15% and declining debt levels. He also mentions that the current order book for iron & steel pipes and pellets is at Rs 1,238.7 crore. In Q3FY24, the net profit rose by 41.5% YoY to Rs 531.6 crore, while revenue increased by 9.5% YoY.

  • Aarti Industriesrises by 5% after signing a long-term agreement worth Rs 6,000 crore to supply a niche specialty chemical to a multi-national conglomerate over four years.

  • Oracle Financial Services Softwarerises to an all-time high of Rs 6,084.2 as its Q3FY24 net profit grows by 77.5% QoQ to Rs 740.8 crore helped by lower professional and finance expenses. Its revenue improves by 26.2% QoQ due to growing product and services segment.

  • IIFL Finance rises as its revenue grows by 28.2% YoY to Rs 1,137.5 crore. However, its net profit declines by 17.2% YoY due to growing finance, impairment, and employee benefit expenses. The company appears in a screener of stocks with increasing quarterly revenue.

  • Nomura maintains its ‘Buy’ rating on Apollo Hospitals, with an upgraded target price of Rs 6,724. The brokerage expects that improvement in capacity utilisation will lead to EBITDA expansion in the medium to long term.

  • Happiest Minds Technologies falls more than 3% as its revenue rises 0.8% QoQ in Q3FY24, missing Trendlyne's Forecaster estimates by 0.9%. Net profit grows by 1.9% QoQ to Rs 59.6 crore during the quarter. It shows up in a screener of stocks where promoters increased pledged shares QoQ.

  • Dolly Khanna adds Ujjivan Financial Services to her portfolio in Q3FY24. She buys a 1.1% stake in the company.

  • Ashish Kacholia cuts his stake in TARC to below 1% in Q3FY24 from 2.2% held in Q2FY24.

  • LTIMindtree plunges almost 10% as its EBITDA margin declines by 10 bps QoQ due to rising finance cost and other expenses in Q3FY24. Net profit increases by 0.6% QoQ to Rs 1,169.8 crore. Its revenue grows by 1.2% QoQ due to growth in the manufacture & resources and healthcare segments. The company appears in a screener of stocks with growing net profit and margins YoY.

Riding High:

Largecap and midcap gainers today include Oracle Financial Services Software Ltd. (6,545.50, 28.69%), Tata Communications Ltd. (1,769.60, 4.25%) and Oil India Ltd. (395.45, 3.70%).

Downers:

Largecap and midcap losers today include LTIMindtree Ltd. (5,603.00, -10.72%), ICICI Prudential Life Insurance Company Ltd. (486.20, -5.58%) and MphasiS Ltd. (2,514.10, -4.30%).

Volume Rockets

24 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Oracle Financial Services Software Ltd. (6,545.50, 28.69%), PCBL Ltd. (311.00, 11.55%) and Sobha Ltd. (1,474.95, 11.19%).

Top high volume losers on BSE were LTIMindtree Ltd. (5,603.00, -10.72%), ICICI Prudential Life Insurance Company Ltd. (486.20, -5.58%) and IndiaMART InterMESH Ltd. (2,488.65, -4.32%).

Birla Corporation Ltd. (1,376.95, -1.22%) was trading at 18.2 times of weekly average. Medplus Health Services Ltd. (738.00, -0.81%) and Century Plyboards (India) Ltd. (800.15, 1.91%) were trading with volumes 10.9 and 7.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

30 stocks hit their 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (5,990.85, 1.10%), Apollo Tyres Ltd. (500.05, 6.00%) and Bank of Maharashtra (51.95, 4.21%).

Stock making new 52 weeks lows included - VIP Industries Ltd. (555.90, -0.28%).

5 stocks climbed above their 200 day SMA including Privi Speciality Chemicals Ltd. (1,161.45, 2.77%) and KNR Constructions Ltd. (257.40, 0.31%). 20 stocks slipped below their 200 SMA including Indian Energy Exchange Ltd. (137.20, -6.83%) and Happiest Minds Technologies Ltd. (883.95, -4.51%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
17 Jan 2024
Market closes lower, Asian Paints falls as it misses Q3FY24 revenue estimates by 2.2%
By Trendlyne Analysis

Nifty 50 closed at 21,571.95 (-460.4, -2.1%), BSE Sensex closed at 71,500.76 (-1,628.0, -2.2%) while the broader Nifty 500 closed at 19,487.60 (-340.0, -1.7%), of the 2,022 stocks traded today, 580 were in the positive territory and 1,422 were negative.

Indian indices extended their losses from the afternoon session and closed in the red, with the Nifty 50 closing at 21,572 points. Heavyweight HDFC Bank dragged the index as if fell 8.4% post its Q3FY24 results. The Indian volatility index, Nifty VIX, rose sharply by 11.1% and closed at 15.1 points. L&T Technology Services closed in the green after its Q3FY24 net profit grew by 6.6% QoQ to Rs 336.2 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower, taking cues from the benchmark index. Nifty Metal and Nifty Bank closed sharply lower than their Tuesday close. According to Trendlyne’s sector dashboard, Media emerged as the top-performing sector of the day, with a rise of over 1.3%.

Major Asian indices closed in the red amid weak global cues. European indices also traded lower, tracking the Asian stocks. US index futures traded in the red, indicating a negative start to the trading session. Brent crude oil futures traded lower, after closing flat on a volatile day on Tuesday.

  • Money flow index (MFI) indicates that stocks like Gujarat Gas, Mangalore Refinery And Petrochemicals, Procter & Gamble Health and Amber Enterprises India are in the overbought zone.

  • Asian Paints falls as it misses Q3FY24 revenue estimates by 2.2%. However, its Q3FY24 net profit rises by 35% YoY to Rs 1,447.7 crore while revenue improves by 5.4% YoY due to growth in decorative, coating and industrial segments.

  • RPSG Ventures is rising as its board of directors approves the issuance of 35.7 lakh shares worth Rs 284.2 crore through a preferential issuance.

  • DB Realty is falling despite its board of directors approving the issuance of equity shares worth up to Rs 2,000 crore through a qualified institutional placement.

  • Cochin Shipyard rises to an all-time high of Rs 888 as its new dry dock and international ship repair facility will be inaugurated today by the Prime Minister. The facility was built with an investment of Rs 2,800 crore.

  • Medi Assist Healthcare Services' Rs 1,171.6 crore IPO gets bids for 5.4X the available 2 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 2.6X the available 98.1 lakh shares on offer.

  • Steel Strip Wheels rises as its Q3FY24 net profit increases by 35.8% YoY to Rs 59.4 crore. Its revenue grows by 18.3% YoY. The company appears in a screener of stocks with growing net profit and margins.

  • KR Choksey upgrades HDFC Life Insurance to 'Buy' with a target price of Rs 745 per share, indicating a potential upside of 21.2%. The brokerage believes that the company's strong product pipeline for FY24-25 in the annuity segment and expansion in the semi-urban and rural segments will help improve its net premiums. It expects the company's net premium to grow at a CAGR of 16.9% over FY23-26.

  • Reports suggest that oil marketing companies may reduce petrol and diesel prices by Rs 5-10 in February, ahead of the Lok Sabha elections. The firms will make a decision once they disclose their Q3 results this month. Despite falling global crude oil prices, the companies are expected to report a net profit of Rs 75,000 crore by the end of Q3FY24.

  • Mas Financial Services rises as its board approves a bonus issue of shares in the ratio of 2:1. The board has fixed the record date as February 22, 2024.

  • Indian Renewable Energy Development Agency rises as it signs a memorandum of understanding with Indian Overseas Bank for co-lending to various renewable projects in the country.

  • PTC Industries rises more than 3% as its wholly-owned subsidiary, Aerolloy Technologies, signs a long-term purchase agreement with Dassault Aviation to supply a full range of titanium cast parts for the Rafale Multirole fighter aircraft.

  • Reports suggest that 39.8 lakh shares (0.2% equity) of HDFC Life Insurance Co, amounting to approximately Rs 248.5 crore, change hands in a large trade.

  • Rail Vikas Nigamrises as it forms a joint venture with Jakson Green for offshore solar projects. The company has also incorporated a new subsidiary, RVNL Infra, in South Africa.

  • Banking stocks like HDFC Bank, Kotak Mahindra Bank, AU Small Finance Bankand Federal Bankfall more than 3% in trade. All constituents of the broader Nifty Bankindex are also trading in the red, causing it to plunge more than 3%.

  • Larsen & Toubrorises to a new 52-week high of Rs 3,614.45 after receiving an order worth Rs 1,000-2,500 crore from the Maharashtra government for the construction of EWS housing and another from a private entity in Oman for a mixed-use development project.

  • The Union Ministry of Heavy Industries, which oversees the PLI scheme for advanced automotive technology, aims for all 85 applications to acquire approved certification against the scheme's domestic value-addition (DVA) criteria by July 2024. The applicants include 67 automotive parts makers and 18 OEMs.

  • PNC Infratechrises as it bags an order worth Rs 1,174 crore from Madhya Pradesh Road Development Corp. The order involves the construction of 400 kms of western Bhopal bypass road.

  • ICICI Lombard General Insurancesurges more than 5% as its net profit grows by 22.4% YoY to Rs 431.5 crore in Q3FY24. Revenue rises by 14.7% YoY owing to an increase in revenue from the marine, health, corporate, crop and motor insurance segments. It features in a screenerof stocks near their 52-week highs with significant volumes.

  • L&T Technology Services rises as its Q3FY24 net profit grows by 6.6% QoQ to Rs 336.2 crore. Its revenue improves by 1.5% QoQ due to growth in transportation and telecom & hi-tech segments.

  • Morgan Stanley has an ‘Overweight’ rating on UltraTech Cement, Dalmia Bharat, Ambuja Cements, and Grasim Industries, and an ‘Equal-weight’ rating on Shree Cements and ACC. The brokerage notes a multiyear increase in demand for the industry. It also expects margin expansion over the next few years.

  • Porinju Veliyath buys a 1% stake in Aurum Proptech in Q3FY24. He now holds a 4.5% stake in the company.

  • Ashish Kacholia cuts stake in NIIT to below 1% in Q3FY24. He held a 1.9% stake in Q2FY24.

  • Vijay Kedia cuts stake in Mahindra Holidays & Resorts India to below 1% in Q3FY24. He held a 1% stake in Q2FY24.

  • HDFC Bank falls despite its Q3FY24 net profit growing by 33.5% YoY to Rs 16,372.5 crore. Its net interest income improves by 23.8% YoY. The company's credit quality improves as its net NPA margin falls by 2 bps YoY.

Riding High:

Largecap and midcap gainers today include ICICI Lombard General Insurance Company Ltd. (1,454.45, 5.84%), Indian Railway Finance Corporation Ltd. (149.10, 5.11%) and Endurance Technologies Ltd. (2,042.10, 4.60%).

Downers:

Largecap and midcap losers today include HDFC Bank Ltd. (1,537.50, -8.44%), Steel Authority of India (SAIL) Ltd. (113.10, -5.40%) and Zomato Ltd. (127.40, -4.61%).

Volume Rockets

19 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included ICICI Lombard General Insurance Company Ltd. (1,454.45, 5.84%), Mishra Dhatu Nigam Ltd. (433.25, 5.68%) and L&T Technology Services Ltd. (5,540.05, 3.56%).

Top high volume losers on BSE were Indian Energy Exchange Ltd. (147.25, -10.27%), HDFC Bank Ltd. (1,537.50, -8.44%) and Axis Bank Ltd. (1,082.30, -3.29%).

MRF Ltd. (1,34,878.30, -1.26%) was trading at 5.6 times of weekly average. Capri Global Capital Ltd. (988.50, 3.18%) and Century Plyboards (India) Ltd. (779.00, 0.10%) were trading with volumes 4.6 and 4.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

27 stocks hit their 52 week highs,

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (5,980.35, 1.28%), Bayer Cropscience Ltd. (5,959.20, -0.16%) and Bharat Heavy Electricals Ltd. (207.10, 2.02%).

2 stocks climbed above their 200 day SMA including Polycab India Ltd. (4,439.30, 2.27%) and Rossari Biotech Ltd. (780.60, -0.36%). 14 stocks slipped below their 200 SMA including HDFC Bank Ltd. (1,537.50, -8.44%) and Kotak Mahindra Bank Ltd. (1,779.65, -3.70%).